Liquor gets cheaper in Delhi as vendors offer heavy discounts
What's the story
Several liquor vendors in Delhi are offering huge discounts on alcohol prices as the state government adopts the new liquor policy. According to reports by the Hindustan Times, new rates have been implemented for both Indian and foreign brands. The discounts vary from 30% to 40% off on the marked price of branded liquors. Notably, the new policy came into effect in November 2021.
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Why does the story matter?
According to reports, the liquor vendors have slashed the prices due to the Delhi government's new excise policy, which allows for competitive pricing that was previously prohibited. As a result, most vendors have brought down their prices from the neighboring cities Noida and Gurugram. In Economics, this is known as "perfect competition," which allows sellers to drop their prices more than their competitors.
Chivas Regal
Different prices in Delhi and Gurugram
A bottle of foreign brand alcohol Chivas Regal (12 years) is being offered for Rs. 1,890 in a few places in the national capital, reports claimed. Gurugram, however, sells the same bottle for Rs. 2,150, with a discount of Rs. 150 on each bottle when three bottles are purchased. Chivas Regal's MRP in Delhi stands at Rs. 2,920.
Premium whiskey
Huge discounts on premium whiskey
Whiskey Theka, a liquor store run by JSN Infratech LLP, is selling a bottle of Jack Daniels at Rs. 1,885. The same bottle has a maximum retail price of Rs. 2,730 in Delhi. According to the report, another premium brand, Glenlivet (18 years old batch reserve), is being sold for Rs 5,115 for a 700-milliliter bottle. However, the MRP is Rs. 7,415.
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Vodka, wine prices also go down
Absolut Vodka is available in Delhi at Rs. 995, down from the MRP of Rs. 1,520. A bottle of Jacob's Creek, a premium wine, is being sold at Rs. 795. The MRP of the bottle is Rs. 1,180 in Delhi. According to the report, another premium wine, Chateau Puygueraud, is being offered for Rs 4,980 against the MRP of Rs 7,220.
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What is the new excise policy?
According to the new excise policy, only private alcohol shops are allowed to operate in the city, with 2-3 liquor vends in each municipal ward. The Delhi administration expects that this would put an end to illegal activities. Another significant change is that the majority of the excise tax has now been subsumed into the license price.
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India has the world's third largest alcohol market
With roughly 600 million people over the legal drinking age, India possesses the world's third-largest alcohol market. In 2018, India consumed approximately three liters of alcohol per person, as per a survey by Statista. This was an increase from the previous year when the figure was around 2.5 liters. The survey was conducted between 2010 to 2018.